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4. The city of College Station wants to make students' lives better around campus by rehabilitating the pavements for the next 10 years. One of
4. The city of College Station wants to make students' lives better around campus by rehabilitating the pavements for the next 10 years. One of the following alternatives must be selected: (25 pts) 1: The first option is to do a light overlay every year, which costs $100,000 each year the cost incurs at the end of year 1 to year 10). 2: The second one is to do a full-depth reclamation every 5 years which costs $800,000 each time (the cost incurs at the end of year 1 and year 6). The first and second alternatives are expected to reduce the annual user cost by $80,000 and $100,000 respectively What is the benefit to cost ratio when comparing alternative 2 against alternative 1, i.e., AB/C2-1, in a benefit-cost ratio analysis with MARR 6%? Which alternative is more profitable
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